ITEM 130-2002-R0106   Authorization to Execute a Site Lease Agreement with the USDA Agricultural Research Service; Montana State University

 

THAT:  The Board of Regents of Higher Education authorizes MSU to execute a site lease agreement for the construction of a new Federally-funded, Federally-owned USDA-Ag Research Service Laboratory Facility.

 

EXPLANATION:  

1.  In November, 2005, the Regents authorized MSU to negotiate with the USDA to provide a site lease to construct a new Federally-funded, Federally-owned USDA-Ag Research Service Laboratory Facility.

 

2.       In partnership with the US Dept. of Agriculture Ag Research Service (USDA-ARS), Montana State University is creating an Animal BioScience Complex on the MSU campus. As a companion to MSU's existing Plant BioScience Complex, the Animal BioScience Complex will consist of a USDA-ARS building (housing functional genomics research activities) and an MSU building housing high-tech classrooms for MSU students and multi-purpose, distance learning facilities for outreach education.

 

3.       The MSU component of the MSU Animal BioScience Complex was authorized in HB005 ($12 million) by the 59th Montana Legislature, for construction with non-state funding. Fund-raising is in progress.

 

4.       The USDA-ARS building is expected to house 7 ARS scientists and will provide space for up to 5 MSU faculty/scientists, plus support staff including MSU graduate students. This facility will be a user of the information derived from the USDA-ARS, Bovine Genome Sequencing Project. This MSU/USDA partnership will use the bovine gene sequence to identify ways to improve economic production efficiency; improve environmental sustainability; and, produce safe, high-quality, and consistent products for consumers - all of which will benefit Montana Ag Producers.

 

5.       Congress has appropriated $2 million for planning/design drawings for this facility and MSU and USDA have agreed on a site for the building. USDA has begun the programming phase, and they have requested a congressional construction appropriation in excess of $20 million to construct what is expected to be a 40-50,000 square foot, high tech laboratory facility.

 

6.       Note that this approval waives the 20 year lease duration limit noted in Policy 1007, in order to meet Federal requirements to assure an appropriate return on the $20+ million Federal investment on the MSU Campus.

 

7.       MSU has negotiated this lease in the best interests of MSU and the State of Montana. Significant benefits to MSU include: space for MSU scientists in the facility; a unique opportunity for MSU scientists to collaborate with USDA-ARS scientists on an important, nationally recognized genomics research project; and, the opportunity for MSU students to work in support of the research project. In addition, as noted above, this facility and its programs will also benefit Montana Ag Producers.

 

8.       Operations & Maintenance funding will be the responsibility of USDA-ARS and will be provided with Federal funding appropriated to the USDA-ARS throughout the life of the facility. Any costs for space occupied by MSU scientists will be funded with indirect cost recovery funds from Federal research grants and will result in no new programs.

 

9.       Lease Agreement attached for reference.